Project Financial Analysis Case Study Solution and Analysis
Intro
Project Financial Analysis Case Study Help is the largest publishing business with a highest market share in the China's book retail market. CMP provides a number of services including; collecting information, processing info and interaction services. Major company sectors of the business include; books, periodicals, consultancy and circulation. The business has a vast product portfolio and its significant products include books, regulars, online media, exhibitions, research study reports etc. Project Financial Analysis Case Study Solution has become a specialized details provider and a large comprehensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Critical Issues
Although, Project Financial Analysis Case Study Help has actually invested its 60 years journey efficiently, being an effective publishing home, nevertheless, the altering macro market patterns and forces bring certain difficulties to the publishing industry in general and CMP in specific. These elements include;
• Entryway of the brand-new publishing firms in the industry.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing strategies
• Improvement of science and technology.
The change of the macro markets have raised a number of questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the capabilities of the company could be utilized to strive for the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Project Financial Analysis Case Study Help has particular strengths that can be utilized to lower the hazards, get rid of the weakness and obtain the opportunities. Strengths of CMP are offered as follows;
• The long term experience of Project Financial Analysis Case Study Solution in the publishing market i.e. 60 years enables the company to provide high quality products at a lower expense utilizing its previous experiences.
• The technical resources and abilities generated by its successful journey provide a competitive advantage to CMP.
• Huge product portfolioof CMP helps it to diversify its risk and provide high value to its customers.
• Strong financial position allows the company to consider several advancement opportunities with no worry of raising fund externally.
Weaknesses
Along with the strengths, the company has particular weaknesses which might increase restraints for the company in executing its advancement program. The weaknesses of Project Financial Analysis Case Study Solution are given as follows;
• Despite of being a science and innovation publishing company, the company still has conventional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose certain growth plans to prevent its dependence over the Chinese markets to attain long term growth.
Opportunities
The growth of the publishing industry is decreasing considering that 2008, affecting Project Financial Analysis Case Study Analysis as well, but the development could be restored by availing certain opportunities presented in the market. The market chances for CMP consist of;
• The company might likewise present Digital Publishing by using its long term technical experience and a strong client recognition in the market.
• CMP might think about an advancement program through the growth towards foreign markets in order to minimize its reliance over Chinese markets by utilizing its large funds.
Risks
The altering macro trends in the market and increasing competitors in the publishing industry has postured particular risks to Project Financial Analysis Case Study Analysis including;( Gurel, 2017).
• Introduction of digital publishing i.e. virtual libraries might cause decreasing market share of Project Financial Analysis Case Study Help due to the customer shift towards virtual libraries.
• The existence of large number of rivals in the publishing market increase the danger for CMP to lose its competitive position in the market, as competitors can acquire a strong consumer base by utilizing certain strategies like aggressive promotion, quality products, etc.
• Entrance of new publishing companies in the market together with existence of high competitors increases the hazard of losing the client base.
Financial Analysis.
Due to absence of information, the financial ratios of CMP could not be computed. It might be analyzed from the Appendix III that the annual overall earnings of Project Financial Analysis Case Study Solution during the period 2000-2012 are growing at a high growth rate, showing that the yearly demand of the products of CMP is growing and the business is rather efficient in drawing in a large number of clients at a potential cost.
Along with it, the second graph which shows the annual development in the Project Financial Analysis Case Study Solution overall assets, shows that the business is rather efficient in adding value to its assets through its revenues. The development in assets reveals that the overall worth of the company is likewise increasing with increasing the total profits. (Unknown, 2013).
Another monetary analysis of the company utilizing the offered information could be the analysis regarding the circulation of total earnings of the company. Major part of the earnings of CMP comes from the sales of its released books i.e. 64% as shown in the Case Appendix V. The business might move towards other company sections with a possible development to attain its future development goal.
PESTEL Analysis
PESTEL analysis might be carried out to learn the numerous external forces affecting the efficiency of the business and the current trends in the external environment of the business. A brief PESTEL analysis of the business is provided as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a considerable effect on the state of mind of the people about the communist ideology of the federal government, therefore, the publishing sector is highly supervised and assisted by the Promotion Department of the Communist Party of China. For that reason, it could be stated that the general political forces affecting Project Financial Analysis Case Study Solution organisation are high. The government policies relating to the publishing sector are also increasing with the passage of time.
Cost-effective.
Financial forces impacting the publishing sector in general and the Project Financial Analysis Case Study Help in particular includesthe rates of paper, the income level of consumers, the inflation rate, and the general GDP development of the country. All these forces integrate impact the need for the publishing market. Together with it, the financial policies related to the import of books impact the total organisation at CPM. China's financial conditions are rather favorable for CMP with high GDP growth and consumer earnings level.
Social and Demographical.
Social and demographical forces consist of the population growth, the consumer's choices towards checking out helpful materials etc. China has the greatest population in the world with a high population growth, revealing the increasing variety of customers of the Project Financial Analysis Case Study Analysis. The customer preferences are shifting towards digital publishing rather than the traditional was of publishing. In this regard, CMP ought to concentrate on digital publishing to meet the changing customer choices.
Technological.
Technological forces impacting the CMP include the technological development in the reading strategies etc. Enhancement of science and innovation along with the increase of digital publishing could minimize the need for the CMP products, if specific actions would not be taken quickly.
Environmental.
Environmental forces impacting Project Financial Analysis Case Study Solution consists of the concerns of ecological communities over the usage of paper in publishing books. The paper utilized in the books while publishing is needed to be non reusable and the ink utilized while publishing should not be damaging for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal regulations relating to the publishing sector is controlled by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be authorized first by the Government to be entered in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Design).
Porter's Five Forces Model might be used to analyze the attractiveness of the publishing market China. A short analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The prospective growth in the market tends to attract new entrants to the publishing industry. However, the existence of intense competitors and the requirement of substantial capital tends to demotivate brand-new entrants to enter in the market.
Danger of Alternative.
Hazard of Substitution is high for the Chinese Publishing Market. The substitute items for the released files is the documents presented in the virtual libraries on certain websites. The changing consumer preferences towards digital knowing increase the danger of substitution for the market.
Competitive Competition.
Competitive competition in the publishing industry is high. The existence of large number of consumers in the Chinese Publishing Market like CIP, PTP and so on tends to produce high competitive competition for CMP. In addition to it, new entrants are also participating in the marketplace increasing the competitors for CMP.
Bargaining Power of Supplier.
The significant suppliers of the Project Financial Analysis Case Study Help consist of the suppliers of the paper for publishing files. As CMP is the biggest publisher in the Chinese Publishing Market, for that reason the overall bargaining power of provider for CMP is low.
Bargaining Power of Buyer.
Haggling power of purchaser in the publishing market is high. Due to the presence of a large number of publishers in the Chinese market and the market saturation, the buyers needs high quality files at competitive rates.
Rivals Analysis.
CMP operates in a highly competitive market with the presence of a great deal of competitors. The business has a competitive position in the market with the greatest market share in the Chinese publishing market. Major competitors of Project Financial Analysis Case Study Analysis include;.
• Chemical Market Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIP acts as a hazard for CMP as it might wean its market share due to its long term competitive background. CIP is focused on digital publishing and could wean the market share of CMP easily in the current market scenario.
Posts and telecommunication Press (PTP).
Another close rival of CMP is PTP. It was also established in the exact same duration as CMP and CIP. It ranks sixth in the state-owned publishers in regards to service scale. It is likewise one of the prominent players in the publishing industry with an annual total earnings of RMB 550 million in 2010.
Alternatives
Alternative-1: Expand towards New Markets
Pros
• Decreasing reliance over the Chinese markets.
• Increasing variety of Customers
• Development opportunities.
• Avoiding the effect of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in growth.
• Threat of failure in new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching new markets.
• Easy to introduce using present capabilities.
• Low risk of Failure.
• Low requirement for funds.
• Increased item portfolio provides high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core company sections to the new one can lead the business to lose need of its items in the market.
Recommendations
As the choices are shifting towards digital publishing and the company need an instant solution to prevent the decreasing market development. The business could likewise consider the expansion program after the success of its digital publishing program.
Execution
In order to present digital publishing in its item portfolio, the company must initially collects the information related to the customer demand, the possible markets, the federal government policies and the data related to the rivals provided in the market. If the initial offering proves a success, the business needs to go for the other markets. In this way the company would be able to implement its digital publishing program.
Conclusion
The development of the publishing industry is decreasing since 2008, showing a danger to the business's long term presence, however the scenario can be managed by considering a development plan in the future. The company could think about presenting digital publishingin its existing market to execute its advancement program at immediate basis and to avoid the danger of failure for entrance in the new markets.
